Can I save money during startup?

You probably won’t be able to until you have achieved a positive cash flow. Here’s why -

You have asked the bank for money for Working Capital, which means money to keep your business going until your income exceeds your expenses. Some of that money will be used for your personal expenses during this time. But if you take out, say $2000 a month for savings, that’s more money that you will have to use from Working Capital, and you may run out. Then you’ll be using your savings to pay your business bills!

Of course, you want to start saving. But wait until you have enough income from your practice to:

1. Pay your business bills

2. Pay your personal bills

3. Pay your taxes (yeah, those).

THEN, you can start putting money aside for personal savings.

For more information on compiling financial information for your business plan, buy Planning for Practice Success.